Amid weakness in the dollar index and heightened geopolitical tensions, gold prices steadied as MCX gold June futures opened on Wednesday at Rs 72,203 per 10 grams, up 0.03% or Rs 23 while MCX silver July contracts opened 0.23% higher at Rs 95,670/kg.
In the last three days, silver prices have risen by Rs 5,100 per kg.
Gold and silver showed very high price volatility on Tuesday and extended its gains.
Commodities, after undergoing a short-lived correction on the hawkish Fed at the end of the last week, are trying to stabilize ahead of the much-awaited and crucial US PCE deflator data due Friday.
Geopolitical tensions have heightened once again as the Israeli army claimed that it has reached the center of the city of Rafah.The ten-year yields surged on the US confidence data, weak auction results and hawkish comments by the Fed’s Kashkari who said that a rate hike is not entirely ruled out. The ten-year US yields closed with a gain of 2.06% at 4.55%.In the US, spot gold was down 0.1% at $2,357.70 per ounce, as of 0059 GMT, while U.S. gold futures were up 0.1% at $2,358.30.Today, the US Dollar Index, DXY, was hovering near the 104.73 mark, rising 0.11 or 0.11%.
“We expect gold and silver prices to remain volatile this week ahead of the U.S. personal consumption expenditure data and European inflation data but gold and silver could hold its support levels of $2310 and $30.40 per troy ounce respectively on a weekly closing basis,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.
Range for gold and silver by Manoj Kumar Jain:
-At MCX, gold is having support at Rs 71,950-71,740 and resistance at Rs 72,400-72,660
– MCX silver has support at Rs 94,800-94,200 and resistance at Rs 96,100-96,850.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)